Hershey's Faces Controversy Over Reese's Recipe Changes
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 17 hours ago
0mins
Should l Buy HSY?
Source: seekingalpha
- Recipe Controversy: Hershey's is embroiled in controversy as Brad Reese, grandson of the Reese's Peanut Butter Cup inventor, claims the company has quietly degraded the candy's core recipe, replacing real milk chocolate with cheaper coatings, which could harm brand reputation.
- Consumer Misleading: Brad Reese questions how Hershey can maintain trust in the Reese's brand while allegedly replacing the essential ingredients of milk chocolate and peanut butter, suggesting this could mislead consumers and potentially erode brand loyalty.
- Company Response: Hershey's has denied making drastic changes to the recipe, asserting that any adjustments are related to expanding product lines into new shapes and sizes, aiming to protect its brand image amidst the controversy.
- Stock Fluctuation: Following the controversy, Hershey's (HSY) shares fell 0.5% in premarket trading on Wednesday after a 0.8% decline on Tuesday, indicating that concerns over brand trust may be affecting investor confidence.
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Analyst Views on HSY
Wall Street analysts forecast HSY stock price to fall
17 Analyst Rating
3 Buy
14 Hold
0 Sell
Hold
Current: 219.400
Low
181.00
Averages
196.27
High
222.00
Current: 219.400
Low
181.00
Averages
196.27
High
222.00
About HSY
The Hershey Company is a snacks company. The Company's segments include North America Confectionery, North America Salty Snacks and International. The North America Confectionery segment is responsible for its traditional chocolate and non-chocolate confectionery market position in the United States and Canada. This includes its business in chocolate and non-chocolate confectionery, gum and refreshment products, protein bars, spreads, snack bites and mixes, as well as pantry and food service lines. This segment also includes its retail operations. The North America Salty Snacks segment is responsible for its salty snacking products in the United States. This includes ready-to-eat popcorn, baked and trans fat free snacks, pretzels and other snacks. The Company's portfolio includes chocolate and confectionery brands such as Hershey's, Reese's, Kisses, Kit Kat, Jolly Rancher, Ice Breakers, LesserEvil, Shaq-a-licious alongside salty snacks, including SkinnyPop and Dot's Homestyle Pretzels.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Recipe Controversy: Hershey's is embroiled in controversy as Brad Reese, grandson of the Reese's Peanut Butter Cup inventor, claims the company has quietly degraded the candy's core recipe, replacing real milk chocolate with cheaper coatings, which could harm brand reputation.
- Consumer Misleading: Brad Reese questions how Hershey can maintain trust in the Reese's brand while allegedly replacing the essential ingredients of milk chocolate and peanut butter, suggesting this could mislead consumers and potentially erode brand loyalty.
- Company Response: Hershey's has denied making drastic changes to the recipe, asserting that any adjustments are related to expanding product lines into new shapes and sizes, aiming to protect its brand image amidst the controversy.
- Stock Fluctuation: Following the controversy, Hershey's (HSY) shares fell 0.5% in premarket trading on Wednesday after a 0.8% decline on Tuesday, indicating that concerns over brand trust may be affecting investor confidence.
See More
- Ingredient Controversy: Brad Reese, heir to the Reese's brand, criticized Hershey for allegedly altering key ingredients in their products, claiming some now contain 'peanut-butter-style crèmes' instead of traditional milk chocolate and real peanut butter, raising concerns about brand integrity.
- MrBeast's Response: YouTube star MrBeast shared Brad Reese's comments on social media, using the moment to promote his chocolate brand, Feastables, which he claims uses real peanut butter, positioning it as a competitor to legacy brands like Hershey.
- Ethics vs. Profit Debate: When questioned about his motives, MrBeast defended his brand by stating that making chocolate isn't the easiest way to achieve high margins, emphasizing Feastables' commitment to ethical sourcing, including fair trade practices and audits for child labor risks.
- Market Reaction: Hershey's shares fell by 1.63% on Friday, although the stock maintains a strong momentum rating in Benzinga's rankings, indicating a positive price trend across short, medium, and long-term periods.
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